The Alabama Department of Insurance (“Department”) has recently released a Revised Bulletin 2025-08, replacing Department Bulletin 2010-10 regarding prohibitions on certain cancellations, non-renewals, and premium increase for property and automobile insurers, and revising Bulletin 2025-08 to change certain dates. The key highlights are as follows:
- Effective January 1, 2026, an insurer shall not cancel or non-renew a personal or commercial property insurance policy or automobile insurance policy if based solely on a claim arising from a catastrophe, natural disaster, acts of nature, weather-related causes, or based solely on a loss arising from an event not affecting the line of business in which the policy is placed.
- Effective for new policies written on or after March 15, 2026, and for policy renewals on or after May 15, 2026, an insurer shall not do any of the following acts with respect to a policy if based solely on a claim arising from a catastrophe, natural disaster, acts of nature, or weather-related causes, or based solely on a loss arising from an event not affecting the line of business in which the policy is placed:
- Apply a premium surcharge to such policy; or
- Offer to place the coverage in another rating tier with the same insurer or place the coverage through an affiliated insurer if either such action would result in a higher premium.
- By February 15, 2026, each insurer that has rating rules which do not comply with this Bulletin must file an amendment to its rating manual through SERFF and provide a complete updated manual in the filing.
Please note that this revised bulletin became effective upon issuance on February 4, 2026.
For any questions related to the above referenced bulletin in Alabama, please contact Westmont Associates!